Education is of great importance in the society. Everyone needs an education, the young and old, rich and poor. There are no exception, it has become a part of our culture.
Getting an education in this country costs a fortune, as lots of youth struggle in this aspect. But there’s an addage that says; ” if education is expensive, consider the cost of ignorance”. As expensive as it is, we cant settle for less.
Thankfully, there are several platform in Nigeria that give out loan to those in pursuit of a bright future. It is called student loan. The aim of this is to assist student pay their way through school.
Student loan is defferent from all other kinds of loan. The payment method is much more flexible and their rates are very low, to enable them pay up with difficulties.
As I earlier said, there are some banks, platform or institutions that support student with certain amount for their school fees and other payment in school.
They easily give out loan to students at a very low interest rate. In this article, we would list some of these banks and the requirements needed to release loans to students.
• Guarantee Trust Bank Student Loan
GuaranteeTrust Bank designed a loan scheme or facility that helps students pay their tuition fees until they graduate. And this only apply to institutions in Nigeria.
At GT Bank, students loan is up to five million naira and you can only request for loan maximum of four months. Interest rates are extremely competitive and the student gets loan immediately after application.
What’s required before getting student loan;
Before student gets access to loan, he/she must submit the complete loan application form and the undertaking form to the bank. A copy of tuition fee bill and credit insurance will be needed also.
• First Bank FirstEdu Loan
First bank is perfect place to get student loans. First Bank’s FirstEdu loan is super flexible. It give loan for payment of school fees, repairing or replacing school facilities and other school-related expenses.
Its repayment plan is flexible. They give a space of 90 days before reminder. You have access to maximum amout of ten million naira.
To get student loan from the bank, the school must have been an existing account for minimum of six months and one year maximum.
In addition to this, First bank requires a domicilation of tuition fees as collateral. Also, the number of students in the school should be more, maximum of 300 pupils.
• Federal Government Education Loan
Federal government has facilitated the establishment of student loan and banks that grant loan to students at reduced rate to enable them access fund with ease.
The Nigerian government also consented to the establishment of education funds in all 36 states. The main focus is on tertiary & secondary education, and teachers development funds.
And also special care funds for people who need assistance such as Federal government scholarships.
• Access Bank Student Loan
The Access Bank student loan is a school fees advance that is set up in order to provide students with funds to cover school fees for a short period.
The Access bank student loan ensures students have the best time schooling without hiccups. The bank releases #5 million as loan amount. You will be given an option to refinance even after you graduate. They also have remittance services.
Certain requirements for student loan at Access bank are;
- • School admission letter and your application form
- • A letter of demociliation of student’s account or parents/guardian’s salary account
- • Identification card or sponsor’s ID card and tuition advice.
- • A copy of credit check and your bank verification number.
What Kind Of Loans Can Student Get ?
Students are allowed access to different types of loan. They get federal loans, refinance loans and private loans.
• Federal loans are given to students by the Nigerian government. They are the most flexible loans and their rates are fair. Federal loans are more convenient, reliable and secured.
To get these loans, first you must fill out the Federal student Aid Free Application form. The form can be gotten online. Ensure you give a detailed information to avoid any issues.
• Private loans are provided by the banks and other financial institutions for students. Although they are not as flexible as federal loans.
For private loans, the lender will demand for proof that shows you can refund money in due time when you apply. A clear proof is credit score. Someone can also pose as your guarantor.
• Refinance loans are loan you can collect after graduating from the institution and the lender confirm you have been keeping your own part of the bargain.
Only then will the lender give you fresh repayment method and at low rates. In order to go through with refinancing successfully, you need a good credit score, atleast one above 500.
Can A Student Get A Loan From The Bank?
In a case where you have tried all other source for quick loans, and have exceeded the limit and still need some funds for schooling, private loans might be the only options.
And you can only get such loans from banks or financial institution. However, before taking private loans from the bank, someone will stand in for you as a guarantor.
How To Apply For An Education Loan In Nigeria
Applying for education loan in Nigeria isn’t difficult. There are a few steps you must follow for you to be succesfully granted a private loan in financial institutions or banks. The first thing to do is;
- You must pick a loan bank as desired. Ensure you do that at the major bank’s branch where the loan will be gotten from.
- Make sure you get the contact and branch location of the loan bank. These are useful information that will serve for future purposes.
- Get the loan provision and criteria for eligibility from the vank by visiting any of the bank of your loan giver. Request for student loan application form.
- Ensure you input the right informations on the application form. Attach all the necessary documents to the form as required by the loan issuer.
- After filling the application form and attaching documents, kindly submit to the loan issuer.
- The bank officials confirms the originality of the documents and verifies the informations you provided in the form.
- You will get an instant response on if your request for loan have been denialed or approved after the documents are validated.
- If your loan request is approved, the money will be paid into your account in a short time.
Conclusion
Financing your education as a student has been made easy with the series of fast student loan options in Nigeria that is provided for you in this article.
All that is required of you is select any platform that releases funds to student for school fees and ensure play your part by providing them the necessary requirements.
Before making any decision or choosing any of the banks, make sure you compare the different loan offers from lenders and the ones with lower interest rates. It will enable you make the right pick, a more suitable offer.